Charter gets tenders for $69 million of notes at early deadline, amends offer

By Jennifer Chiou

New York, Oct. 15 - Charter Communications, Inc. announced the early results as well as amendments to subsidiary Charter Communications Holding Co., LLC's cash tender offer for five series of senior notes issued by Charter Communications Holdings, LLC.

As of 5 p.m. ET on Oct. 14, the early tender deadline, the company had received tenders from holders of $69 million of notes having a top acceptance priority level.

The company began the offer on Sept. 30, and it includes the company's $63.33 million outstanding 10¾% senior notes due 2009, $17.50 million outstanding 10¼% senior notes due 2010, $15.66 million outstanding 11¾% senior discount notes due 2010, $88.21 million outstanding 10% senior notes due 2009 and $36.54 million outstanding 9 5/8% senior notes due 2009.

If the amount of notes tendered exceeds the cap, Charter HoldCo will accept notes with an acceptance priority of 1 - the 10¾% notes, 10¼% notes and 11¾% discount notes - before it accepts any notes with an acceptance priority of 2 - the 10% notes and 9 5/8% notes.

Charter Holdco added that it has decreased the consideration to be paid for notes having an acceptance priority level of 2.

For each $1,000 principal amount, Charter HoldCo is now offering $975 for the 10¾% notes; $970 for the 10¼% notes and 11¾% discount notes; $940 for the 9 5/8% notes, down from $970; and $950, down from $980, for the 10% notes. Holders will also receive accrued interest.

In addition, the early tender deadline for the affected notes has been extended until 5 p.m. ET on Oct. 29, the tender expiration date.

Charter HoldCo will spend up to $100 million on the tender offer, including interest, according to a previous company news release.

The payout amounts still include a $15 early tender premium for notes tendered by the early tender deadline.

If the company is able to purchase some but not all tendered notes having a particular acceptance priority level, Charter HoldCo will prorate the amount of notes with that acceptance priority level to be purchased.

Notes with an acceptance priority level of 1 that are tendered by the early tender deadline and accepted are expected to be repurchased within three business days. All other notes that are tendered and accepted will be repurchased within three business days of the offer expiration.

The company said the purpose of the tender offer is to reduce Charter's consolidated interest expense.

Citi (212 723-6106 or 800 558-3745) is the dealer manager for the tender offer, and Global Bondholder Services Corp. (212 430-3774 or 866 294-2200) is the information agent and depositary.

Charter is a broadband communications company based in St. Louis.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.